Grand Blanc Irrevocable Trust Lawyers

Trusts That Cannot Be Changed

An irrevocable trust is one that cannot be changed after it has been established. A trust is a legal entity that is separate from the individual who creates it. There are two types of trusts: revocable and irrevocable. A revocable trust can be changed or revoked by the individual who created it, while an irrevocable trust cannot be changed or revoked once it has been established.

An irrevocable trust is often used to protect a person's assets from creditors or in certain tax situations. The individual who established the trust, known as the grantor, can no longer make changes to the trust or have control over the assets in the trust. The grantor can, however, receive income from the trust.

Contact our Grand Blanc irrevocable trust attorneys at (810) 292-3115 to schedule an initial consultation.

What Is a Grantor Trust?

A grantor trust is a trust that is created by one person, known as the grantor, which is typically used to protect the assets of another person, known as the beneficiary. The grantor is still considered the owner of the assets in the trust and can transfer assets into the trust at any time. The grantor can also receive income from the assets in the trust.

A grantor trust is often used to protect an individual's assets from creditors. If a creditor is successful in a lawsuit against the individual, the assets in the trust are not at risk. A creditor can also be unable to reach assets in the trust if the grantor passes away. The assets in the trust are then considered part of the trust and are not included in the individual's estate.

A grantor trust can also be used to reduce taxes. If the grantor is in a high tax bracket and the trust receives income, the trust can pay a lower tax rate than the grantor would. The grantor can also make charitable contributions from the assets in the trust, which can be deducted from the grantor's taxable income. The grantor can also take income from the trust, which is not taxed.

What Is an Irrevocable Trust?

An irrevocable trust cannot be changed or revoked after it has been established. The grantor of an irrevocable trust no longer has control over the assets in the trust and cannot make changes to the trust.

An irrevocable trust is often used to protect assets from creditors or to reduce taxes. Assets in an irrevocable trust are not at risk of being taken by creditors and the trust can pay a lower tax rate than the grantor would. The grantor can also take income from the trust, which is not taxed.

Contact our Grand Blanc irrevocable trust lawyers at (810) 292-3115 to schedule an initial consultation.